The nearer a domestic lease in Axmouth and Branscombe nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Axmouth and Branscombe will meet the qualifying criteria; that being said a lawyer should be able to confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Axmouth and Branscombe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Axmouth and Branscombe valuers.
Stanley was the the leasehold owner of a high value apartment in Axmouth and Branscombe on the market with a lease of just over 59 years remaining. Stanley on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2009 we were contacted by Dr G Rose who, having took over the lease of a first floor flat in Axmouth and Branscombe in November 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical homes in Axmouth and Branscombe with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out in 2101. Taking into account 75 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2009 we were contacted by Mrs N Allen who, having moved into a newly refurbished flat in Axmouth and Branscombe in April 2003. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Axmouth and Branscombe with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 invoiced quarterly. The lease elapsed on 14 April 2090. Taking into account 64 years unexpired we estimated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.